Market Summary for Tuesday, March 25

Market Summary for Tuesday, March 25

Stocks Gain as Markets Overlook Consumer Confidence Decline

U.S. equity markets closed mostly higher on Tuesday, despite a report indicating a continued drop in consumer confidence. The Nasdaq Composite rose 0.5% to 18,271.9, the S&P 500 gained 0.2% to 5,776.7, while the Dow Jones Industrial Average remained flat at 42,587.5. Sector-wise, communication services led the gainers, while utilities saw the steepest decline.

Economic Highlights

Consumer confidence in the U.S. declined for the fourth consecutive month in March, according to the Conference Board, with expectations hitting a 12-year low due to economic uncertainty. The report showed a sharper-than-expected drop, signaling potential weakness in consumer sentiment.

Meanwhile, U.S. Treasury yields declined, with the 2-year yield falling 2 basis points to 4.02% and the 10-year yielddropping 1.6 basis points to 4.32%. Federal Reserve Governor Adriana Kugler indicated that policymakers may keep interest rates steady "for some time" while assessing the impact of recent government policies.

On the trade front, President Donald Trump suggested that some countries might receive exemptions from the upcoming reciprocal tariffs, set to take effect on April 2. Reports indicate that the White House is also preparing to announce new duties on automobiles and pharmaceuticals.

Company News

• Merck (MRK) secured global rights to develop and sell Jiangsu Hengrui Pharmaceuticals' heart disease drug in a deal worth up to $2 billion. However, Merck shares fell 4.8%, making it the worst performer on the Dow and the second worst on the S&P 500.

• KB Homes (KBH) dropped 5.2% after revising its full-year housing revenue forecast downward, citing affordability issues and macroeconomic uncertainties.

• CrowdStrike (CRWD) gained 3.3%, ranking among the top gainers in the S&P 500 after BTIG upgraded the stock to buy from neutral.

• International Paper (IP) surged 6.5%, marking the best performance on the S&P 500, following an optimistic growth forecast at its annual investor event.

• Freeport-McMoRan (FCX) climbed 3.4% as copper futures advanced over 2%, nearing record highs due to supply concerns and tariff uncertainties.

• United Parcel Service (UPS) slid 5.1%, the biggest decliner on the S&P 500, after Bank of America lowered its earnings forecast for the current quarter.

• AbbVie (ABBV) fell 3.7% after filing a lawsuit against Danish biotech firm Genmab, a long-time collaborator.

Commodities & Market Breadth

• Gold gained 0.4% to $3,054.90 per troy ounce, while silver surged 2.3% to $34.21 per ounce.

• Declining stocks outpaced advancing ones on the S&P 500 by a 1.3-to-1 ratio.

• The S&P 500 recorded 11 new highs and 4 new lows, while the Nasdaq logged 42 new highs and 160 new lows.

Trading Volume

Trading activity was lighter than usual, with 13.0 billion shares changing hands across U.S. exchanges, compared to an average of 16.4 billion shares over the past 20 sessions.